...Standalone Profile Drives IDRs: Turkiye Is Bankasi A.S.s (Isbank) IDRs are driven by its Viability Rating (VR). The VR reflects the tough operating environment, decreasing core capitalisation and adequate liquidity. These factors are balanced by the banks sound management, which enables it to adapt its strategies to the needs of the changing operating environment, broad and diversified franchise with leading market shares, sound asset quality and performance. Tough Operating Environment: The operating environment for Turkeys banks is increasingly tough, affected by regulatory changes that limit the profitability of retail business, slowing credit demand, sharp interest rate movements, exchange-rate volatility and political pressures. Changes in international investor sentiment towards emerging markets also represent a potential risk. However, Isbank has performed well through different cycles to date. Declining Capitalisation: Isbank's core capital ratios have been declining over the years,...
